BWP Trust (ASX:BWP) and this ASX dividend share could be great ways to bolster your income portfolio this month. Here’s why…
The post 2 top ASX dividend shares to buy this month appeared first on The Motley Fool Australia. –
Are you wanting to bolster your income portfolio with some reliable ASX dividend shares in April?
Then you might want to take a look at the dividend shares listed below. Here’s what you need to know about them:
BWP Trust (ASX: BWP)
BWP is the largest owner of Bunnings Warehouse properties in Australia with a total of 68 properties in its portfolio.
While having such a reliance on a single tenant can carry risks, on this occasion it appears to be a strength. Bunnings is a fantastic business, which has proven to be able to grow whatever the economy throws at it.
In addition to this, Bunnings’ owner, Wesfarmers Ltd (ASX: WES), is a major shareholder of BWP. As a result, Wesfarmers is unlikely to do anything that would hurt its investment, such as mass lease terminations.
Pleasingly, BWP has been on form again this year. It recently released its first half results for FY 2021 and revealed profit growth of 6% over the prior corresponding period to $144 million.
This positive form allowed the BWP board to reaffirm its plans to pay a full year distribution of ~18.3 cents per share. Based on the current BWP share price, this represents a generous 4.6% dividend yield.
Rural Funds Group (ASX: RFF)
Rural Funds is a leading owner of agricultural property. It currently owns a $1.1 billion portfolio of diversified agricultural assets, including almond and macadamia orchards, premium vineyards, water entitlements, cattle and cropping assets. These are all leased to high quality and experienced tenants. This includes wine giant Treasury Wine Estates Ltd (ASX: TWE).
One of the main attractions to the company for investors is its long term leases. These provide the company with great visibility on its future earnings, allowing it to target consistent distribution growth each year. At the end of the first half, Rural Funds’ weighted average lease expiry (WALE) stood at a sizeable 11.1 years.
In FY 2021 Rural Funds intends to pay a 11.28 cents per share distribution and then an 11.73 cents per share distribution next year. Based on the current Rural Funds share price, this equates to 4.85% and 5% yields.
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Returns As of 15th February 2021
- Top ASX shares to buy in April 2021
- ‘Remarkable resilience’ in Aussie farmland a tailwind for ASX agriculture shares
- 2 ASX dividend shares to buy in April
- 2 outstanding ASX shares for your retirement portfolio
- 2 quality ASX dividend shares with generous yields
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended RURALFUNDS STAPLED. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.